(1) It shall be the duty of the holder of a supply licence or a transmission licence in respect of a particular area to develop and maintain an efficient, coordinated and economical system of electricity supply or transmission in the area of transmission or area of supply as the case may be.
(2) Each licensee and generating company in discharge of its duties shall comply with the provisions of the regulations framed from time to time governing the terms and conditions for the operation and maintenance of power system and electric supply lines.
(3) Subject to sub-section (4) of this section, sections 12 to 19 of the Indian Electricity Act, 1910 (which relate to the carrying out of works) shall have effect in relation to a person authorised by a licence under this Act to transmit or supply electricity, as if he is a licensee in that Act.
(4) Where any of the sections mentioned in sub-section (3) above is applied to a licence holder by his licence, it shall have effect subject to such restrictions, exceptions and conditions as may be included in the licence.